ECONOMICS 3P03
MONEY AND BANKING I
Fall 2015
A. General Information
| Instructor | Professor Zisimos Koustas |
| Office | Plaza 437 |
| Phone | 688-5550 Ext. 3326 |
| Web Page | http://spartan.ac.brocku.ca/~zkoustas/ |
| Office Hours | T 10:00 - 11:00 TH 10:00 - 11:00 |
B. Course Grading
There will be a midterm test and a final examination. In addition, two problem sets will be assigned and marked. The average of the assignment grades will be used to calculate the final grade. The weights attached to each piece of work in the course are as follows:| Midterm test | 40% |
| Assignments |
10% |
| Final examination | 50% |
Note: Students may withdraw from
the course without academic penalty by Tuesday, November 10,
2015.
C. Suggested Study Method
Attending classes regularly and taking class notes is strongly recommended. Active class participation, through contributing to the discussion, is very much encouraged. Discussing the assigned problems with classmates is allowed and indeed encouraged. However, the final product must reflect your own work. Late assignments will not be accepted after the solutions have been posted online. Otherwise, a penalty of 10 marks per overdue day will be applied.
D. Course Outline
Required Text: Frederic S. Mishkin and Apostolos Serletis, The Economics of Money, Banking, and Financial Markets: Fourth or Fifth Canadian Edition, Pearson Canada Inc., 2011 (2014).
| Part I: Introduction | |
| Week 1 | Chapter 1: Why Study Money, Banking, and Financial Markets? |
| Week 2 | Chapter 2: An Overview of the Financial System |
| Part II: Financial Markets | |
| Week 3 | Chapter 4: Understanding Interest Rates |
| Week 4 | Chapter 5: The Behaviour of Interest Rates |
| Week 5 | Chapter 6: The Risk and Term Structure of Interest Rates |
| Week 6 | Chapter 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Markets Hypothesis |
| Midterm Test: Saturday, October 31, 2015 | |
| Part III: Financial Institutions | |
| Week 7 | Chapter 8: An Economic Analysis of Financial Structure |
| Weeks 8-10 |
Chapter 13: Banking and the Management of Financial Institutions |
| Part IV: Asset Allocation | |
| Week 11 | Portfolio Choice (Notes will be
posted on Sakai) |
| Week 12 | The Capital Asset Pricing Model (Notes will be posted on Sakai) |
